Editor's Note: Take a look at our featured best practice, Manufacturing Company Financial Model - Dynamic 10 Year Forecast (Excel workbook). Highly sophisticated and user-friendly Financial Model providing advanced financial & planning analysis for a Startup Manufacturing Company. Suitable for any type of industry, the model is a flexible tool for CEO/CFO's to control and improve daily operations and forecast financial and [read more]
How to Utilize Internet of Things (IoT) System to Expedite Decison-Making in the Manufacturing Sector?
Also, if you are interested in becoming an expert on Supply Chain Management (SCM), take a look at Flevy's Supply Chain Management (SCM) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.
* * * *
Manufacturing today entails immediate yet informed decision making. However, with increasing levels of sophistication and production, senior leadership often has limited time to make optimum decisions pertaining to the number of unanticipated issues surfacing from time to time. These issues—if not managed properly and timely—can lead to defects and wastes.
Top global enterprises are utilizing innovation and creative ways to enable prompt decision making. Specifically, they are using Internet of Things (IoT) to effectively handle critical aspects of manufacturing. Successful implementation of a Manufacturing IoT system facilitates in automating key tasks, decisions and processes; curtailing scrap and rework; and enhancing productivity.
People often object to implementing an IoT system by citing other important projects that they are already undertaking and the resource and time constraints as pressing hurdles. To work around these limitations, manufacturers can engage 3rd party consultants having proven expertise in end-to-end successful IoT, Asset Tracking, and manufacturing systems deployment.
Implementing a Manufacturing IoT System leverages immense benefits, including:
- Enhancing the ROI of other programs under way.
- Streamlined and Process Improvement and Robotic Process Automation help prompt informed decisions.
- Managing materials efficiently.
- Adjusting to customer requirements.
- Avoiding costly mistakes and rework.
However, harnessing IoT necessitates careful deliberation and planning. The core requirements to effectively implement a Manufacturing IoT system can be segregated into 2 broad categories:
- Functional Requirements
- System Requirements
Functional Requirements
Functional Requirements (FR) describe the system or its components. FR provide a description of services that the Manufacturing IoT system must offer. FR for Manufacturing IoT may include:
- Control Assets and Administer Asset Properties
- Track Assets Movement
- Setup Locations
- Maintain Equipment Duty Cycles for Maintenance
- Record Raw Material Shelf Life
- Maintain Asset Family and Digital Thread
- Extend Material Shelf Life
- Enable Cutting and Kitting
- Asset Search and Filter
- Maintain Assets Events
- Record History of Events
- Generate New Assets
- Record Cured Kits
- Document Assets
- Allow Synchronization with Current Systems
- Generate Real-time Production Maps
- Enable Integration with Cut Planning Optimization Systems
- Allow Production of Passive RFID Tags Internally
- Create Customized Alerts
System Requirements
All systems require availability of certain software resources, functionalities, or other hardware components. These prerequisites have to be met in the design of a system. Typical System Requirements for manufacturing IoT may include:
- User Authorization
- Quick installation
- Usability
- Integration to Next-generation IoT Platforms
- Radio-frequency Identification (RFID) Ability
Let’s delve deeper into some of the Functional Requirements for now.
Control Assets and Administer Asset Properties
The system should be able to manage multiple assets and add new assets. It should be capable of:
- Creating asset properties, e.g., name, ID and shipment date.
- Editing property labels and show / hide asset properties.
- Automatically adding materials’ expiry date, “remaining exposure time,” “tool autoclave cycles left,” and “tool usage time left.”
Trace Assets Movement
The IoT system should be able to:
- Follow assets location from one site to another during the manufacturing process.
- Allow integration of MAT with RFID and other floor sensors to gather real-time assets’ location and condition data.
- Enable asset location reporting manually, through barcode, or hybrid (barcode and RFID).
Setup Locations
The system should maintain:
- Asset data from multiple sites (locations).
- Assets movement to and fro various sites, reported using RFID or other sensors.
Maintain Equipment Duty Cycles for Maintenance
The IoT manufacturing system should record all maintenance needs and maintenance activity performed on an asset. Specifically it should:
- Keep data on all tools available at various sites with their duty cycles for preventive maintenance.
- Maintain record and generate reports on maintenance activity preformed on a specific tool.
Record Raw Material Shelf Life
The IoT manufacturing system should:
- Automatically calculate raw material and work in process exposure time and date of expiration.
- Maintain assets’ shelf life and generate automated screen notifications, alerts, emails, or SMS.
Interested in learning more about the details of other Functional and System Requirements of a Manufacturing IoT system? You can download an editable PowerPoint on Manufacturing: Internet of Things Implementation here on the Flevy documents marketplace.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”
– Michael Duff, Managing Director at Change Strategy (UK)
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
“Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”
– Omar Hernán Montes Parra, CEO at Quantum SFE
167-slide PowerPoint presentation
In this Lean Manufacturing presentation, we explore the Lean philosophy, which is rooted in the Toyota Production System (TPS). Lean aims to enhance customer value by optimizing processes and eliminating waste, ultimately increasing productivity and value with fewer resources.
A key [read more]
Want to Achieve Excellence in Supply Chain Management (SCM)?
Gain the knowledge and develop the expertise to become an expert in Supply Chain Management (SCM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.
Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities. It also captures the management of the flow of goods and services.
In February of 2020, COVID-19 disrupted—and in many cases halted—global Supply Chains, revealing just how fragile they have become. By April, many countries experienced declines of over 40% in domestic and international trade.
COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM. In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart. Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.
Learn about our Supply Chain Management (SCM) Best Practice Frameworks here.
Readers of This Article Are Interested in These Resources
183-slide PowerPoint presentation
Good Manufacturing Practices (GMP) are a set of guidelines and regulations that ensure the production and manufacturing of safe and high-quality products, including food, drugs, and medical devices. These practices are designed to minimize the risks involved in any pharmaceutical production that [read more]
|
|
Excel workbook
|
|
Excel workbook
| |||
About Mark Bridges
Mark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago. You can connect with Mark on LinkedIn here.
